Junior ISAs explained

A Junior ISA is a tax-free savings or investment account for a child under 18. A parent or guardian opens it, family and friends can pay into it, and the money belongs to the child from the moment it goes in. The headline rule is also the one that shapes every decision about the account: the money cannot be taken out until the child turns 18, with only narrow exceptions for terminal illness or death¹.

Each child can have up to £9,000 paid into Junior ISAs per tax year, and that allowance is entirely separate from the ISA allowances of the adults doing the paying². The account comes in two forms, cash and stocks and shares, and a child can hold one of each at the same time⁴. When the child turns 18, the account automatically becomes an adult ISA and the money is theirs to use as they wish¹.

Junior ISAs have been available since 1 November 2011, originally for children who did not have a Child Trust Fund⁵. They are now a mainstream product: around 1.6 million Junior ISA accounts were paid into in 2024 to 2025, with £2.5 billion subscribed in total and an average subscription of £1,570².

What a Junior ISA is and who it is for

A Junior ISA is a long-term, tax-free savings account that a parent or legal guardian opens to invest in a child's future⁷. It is a tax-advantaged savings product available to children, created under the Individual Savings Account Regulations⁸. The child is the account holder: the account is opened in their name, the money in it is legally theirs, and no one, including the parents who paid the money in, has a claim on it⁹.

The product was designed for two things that sit together uneasily. First, it gives a child a pot of money that has grown free of tax on interest or investment gains. Second, it locks that money away so it cannot be dipped into for everyday spending, by the parents or by the child. That lock is the trade-off at the heart of a Junior ISA: in exchange for the tax-free growth and the discipline, the money is inaccessible for what may be 18 years.

It is worth being clear about who the account suits. A Junior ISA tends to fit families saving for a child's long-term future, such as help with university costs, a first car, a housing deposit or simply a start in adult life. It does not suit money that may be needed before the child turns 18, because there is no ordinary way to get it out. For shorter-term or accessible saving for a child, an ordinary children's savings account, which can be withdrawn at any time, is the alternative, though its interest may be taxable in edge cases. The comparison page on Junior ISA vs children's savings account sets the two side by side.

The scale of the product is worth knowing. Junior ISAs have been open to children under 18 who do not own a Child Trust Fund since 1 November 2011⁵. In the 2024 to 2025 tax year, around 1.6 million accounts were subscribed to, up from 1.37 million in 2023 to 2024, with £2.5 billion paid in, of which roughly 38.3% went into cash accounts. The average subscription rose to £1,570, an increase of 16.6% on the previous year². Most families, in other words, use well under the full £9,000 allowance.

Junior ISA allowance: £9,000 per child each tax year

The allowance is £9,000 per child, per tax year³. The tax year runs from 6 April to 5 April the following year, and the allowance resets on 6 April: unused allowance does not roll over, so money not paid in by 5 April is lost as allowance for that year¹⁰. The government confirmed the £9,000 Junior ISA subscription limit in its rates and allowances documentation¹¹.

Three features of the allowance matter in practice:

• It belongs to the child, not the payer. Each child has their own Junior ISA allowance, separate from the ISA allowances of the parents or guardians making the payments¹⁰. An adult can use their own £20,000 ISA allowance in full and also put money into a child's Junior ISA, and neither affects the other.
• It covers both types together. The £9,000 can go into a cash Junior ISA, a stocks and shares Junior ISA, or in any proportion between the two⁸. Paying £5,000 into cash and £4,000 into investments uses the allowance exactly as £9,000 into one account would.
• Anyone can contribute. Parents, grandparents, other family members and friends can all pay in, and so can the child themselves. All payments, whoever makes them, count towards the same £9,000.

The allowance has not always been at this level. Before 1 July 2014, the annual subscription limit for junior ISAs was £3,840 per tax year, and the regulations raised it from that figure in 2014¹². The current £9,000 has applied since the 2020/21 tax year and remains in place for the 2026/27 tax year¹⁰.

If more than £9,000 is paid in during one tax year, the excess is not a valid subscription. Providers check payments against the limit, and if too much goes in, the provider will contact the registered contact to put it right, which normally means returning the excess amount. The page on how much can I put in a Junior ISA covers the mechanics, and when an ISA subscription breaks the rules explains what happens to money paid in error.

Cash or stocks and shares: the two types of Junior ISA

Two types of Junior ISA are available: cash and stocks and shares. A child can only have one of each type at any one time⁴. The choice between them is the main decision a family makes when opening the account.

A cash Junior ISA works like a savings account. Money is deposited, interest is added, and the balance does not fall in value unless it is withdrawn, which in practice it cannot be before 18. Interest is free of UK Income Tax. NS&I's Junior ISA, for example, is a cash ISA, and NS&I does not offer a stocks and shares version¹³. Banks and building societies, including TSB and Skipton Building Society, offer cash Junior ISAs alongside NS&I¹⁴.

A stocks and shares Junior ISA holds investments, such as funds or shares, chosen by the registered contact. The value can rise or fall, and the child could get back less than was paid in, but over long periods investment growth has historically outpaced cash savings. Investment growth and any gains are free of UK Capital Gains Tax and Income Tax on dividends within the wrapper. Investment platforms and fund managers, including AJ Bell and Wealthify, offer stocks and shares Junior ISAs¹⁶.

Because the money is locked in for years, the time horizon is long, which is the main argument families weigh for the investment version: an 18-year wait can ride out the ups and downs of markets. The counterweight is the certainty of cash. The comparison page on cash Junior ISA vs stocks and shares Junior ISA works through the trade-offs, and the guides to cash ISAs and stocks and shares ISAs explain how each wrapper works in general.

The split of the market shows families use both. In 2024 to 2025, around 38.3% of the £2.5 billion subscribed to Junior ISAs went into cash, meaning most of the money went into stocks and shares accounts².

Who can open a Junior ISA and who can pay in

The rules on who can open the account are stricter than the rules on who can pay into it. A Junior ISA application may only be made by a person who is over 16 and either has parental responsibility for the child or is the child themselves¹⁸. In practice this means:

• A parent or legal guardian with parental responsibility opens the account for a child under 16¹⁹.
• The child, from age 16, can open and manage a Junior ISA in their own name¹.
• Foster parents cannot open one, because they do not have legal parental responsibility²⁰.
• Grandparents, other relatives and friends cannot open one, but they can pay money into an account a parent or guardian has opened¹⁹.

Residency matters too. Usually, a Junior ISA can only be opened for a child living in the UK, unless the opener is a Crown servant and the child depends on them for care, as with military families posted overseas⁴. The UK residency requirement applies to the child at the point the account is opened, so a parent living abroad does not necessarily prevent a UK-resident child from having one²⁰. The page on who can open a Junior ISA covers the detail, and who can open an ISA sets out the adult rules.

There is a special route for children who were in local authority care. A young person who was looked after for more than 12 months after 2 January 2011 and does not have a Child Trust Fund may have a Junior ISA opened for them, with the account managed on their behalf rather than by their parents²¹. The page on Junior ISAs for children in care explains how these accounts work.

Once the account is open, anyone can contribute: parents, grandparents, godparents, friends, and the child themselves from birthday money or earnings. Every payment counts towards the same £9,000 allowance, whoever makes it¹⁰.

The registered contact: who runs the account until the child takes over

Every Junior ISA has a registered contact: the person who opens the account and manages it on the child's behalf. Where the child is under 16, the registered contact must be the person with parental responsibility, and they are authorised to operate the account for the child¹⁵.

The registered contact is the only person who can make changes to the account. Under the government's rules, that means the registered contact alone can¹:

• change the account, for example from a cash to a stocks and shares Junior ISA
• change the account provider
• report changes of circumstances, such as a change of address

This is worth pausing on. The parent who pays in the most money, a grandparent, or anyone else has no standing to direct the account: only the registered contact can switch providers or move between cash and investments. Providers describe the arrangement the same way: AJ Bell states the account is managed by the parent or guardian who opened it, known as the registered contact¹⁶.

The registered contact role can pass to someone else in certain circumstances. Official guidance covers how a person granted formal parental responsibility, such as a carer or adoptive parent, can take over management of a Junior ISA²². And at 16, the child can apply to take over: once they become the registered contact, the original registered contact no longer has authority to operate the account¹⁵.

Money is locked in until 18, with narrow exceptions

The defining rule of the Junior ISA is that the money cannot be accessed before the child's 18th birthday. You cannot take money out of a Junior ISA until the child turns 18¹. The money belongs to the child and can only be accessed by them when they turn 18²³. Providers state the same in their terms: AJ Bell states money can only be accessed once the child turns 18¹⁶.

This lock applies to everyone, including the parents who funded the account. Money paid into a Junior ISA is an irrevocable gift to the child. There is no hardship withdrawal, no cooling-off route to a refund once the account has been running, and no way for the registered contact to release funds for family expenses. Before paying in, a family needs to be confident the money will not be needed.

The exceptions are narrow and set in legislation:

• Terminal illness. The ISA regulations permit withdrawals where the named child is terminally ill, on a claim accepted by HMRC, made by the registered contact¹⁸.
• Death of the child. If the child dies, the account ends and the money passes to whoever inherits their estate²⁴.

Some providers' terms spell out the same exceptions in their closure rules: TSB states its Junior Cash ISA cannot be closed unless the money is transferred to another Junior ISA, the child becomes terminally ill, or the child dies¹⁴.

The page on whether money can be taken out of a Junior ISA before 18 covers the exceptions in detail.

What happens when the child turns 16 and 18

A Junior ISA changes hands at 16 and changes form at 18. The two birthdays do different things.

At 16, the child can take over the running of the account. A parent or guardian manages a Junior ISA while the child is under 16; once the child reaches 16, they can choose to manage the account themselves⁶. They do this by applying to become the registered contact, and if they do, the original registered contact no longer has authority to operate the account¹⁵. NS&I's version of this is that a 16-year-old can manage the account online after registering with a signed form¹³.

At 18, the account converts. Junior ISAs automatically turn into an adult ISA when the child turns 18¹. At that point the young person can take out any money in the account, or leave it invested¹. Which adult ISA it becomes depends on the provider: NS&I states that on the child's 18th birthday the Junior ISA ends and the money is automatically transferred into an adult cash ISA with NS&I, with notice sent about a month before¹³. Once the money is in an adult ISA, the young person can decide what to do with it, including transferring to another provider²⁶.

The page on what happens to a Junior ISA at 18 goes further into the choices a young person then has, including moving Junior ISA money into a Lifetime ISA if they are saving for a first home.

Junior ISAs and Child Trust Funds: a child can only have one

A child cannot have a Child Trust Fund and a Junior ISA of any type at the same time¹³. This rule catches out families who do not realise a Child Trust Fund exists: every child born in the UK between 1 September 2002 and 2 January 2011 was issued one, and many were never claimed. Over £1 billion was reported as sitting unclaimed in Child Trust Funds²⁸.

The rule works in one direction only. A child with a Child Trust Fund cannot open a Junior ISA, but the Child Trust Fund can be transferred into a Junior ISA, and the whole amount must be moved⁹. Once the transfer is complete, the Child Trust Fund closes and the Junior ISA rules apply from then on. The order matters: the transfer has to be done first, because a child cannot hold both at once¹⁰.

The one-account rule also applies within Junior ISAs. A child can only hold one cash Junior ISA and one stocks and shares Junior ISA at the same time²⁶. Providers state this in their terms: TSB notes each child can only have one Junior Cash ISA open at once¹⁴, and NS&I notes a young person can only have one cash Junior ISA in their name at a time⁹.

If you are not sure whether a child has a Child Trust Fund, it can be traced. The page on how to find a lost Child Trust Fund explains the steps, and moving a Child Trust Fund into a Junior ISA covers the transfer process. The main Child Trust Funds page explains what they are and what happens at 18.

Moving a Junior ISA to another provider

Junior ISAs can be transferred between providers, and the allowance is not used up by doing so: a transfer is not a new subscription. The process follows the same pattern as adult ISA transfers, with the new provider arranging the move.

The steps are:

1. Open the new Junior ISA with the chosen provider, telling them the transfer is coming from the old account.
2. The new provider contacts the old provider and arranges the transfer of the balance.
3. The money moves directly between providers. It is never paid out to the registered contact, because the child's money cannot be released before 18.

Providers confirm they accept transfers in. Skipton Building Society states you can request a transfer in from another Junior ISA held with another provider¹⁵, and TSB states a Junior ISA held with another provider can be transferred to it¹⁴. NS&I states it will always transfer the whole amount of a Junior ISA balance out to the new provider¹³, which reflects the general position: Junior ISA transfers are transfers of the whole account, not partial withdrawals.

The registered contact is the person who arranges a transfer, as the only person authorised to change the account provider¹. The page on how to transfer a Junior ISA covers the process in detail, and the general guide to how to transfer an ISA explains the rules that apply to all ISA transfers, including what to do if a transfer is delayed.

If the child dies or cannot manage the account

Two difficult situations have their own rules: the death of the child, and the child losing the ability to manage the account.

If the child dies before 18, the money in the Junior ISA is paid to whoever inherits their estate. Because the money belonged to the child, it does not return to the parents automatically. The tax treatment differs from adult ISAs: since 2018, all types of adult Isa turn into a continuing account of a deceased investor, keeping their tax-free status during estate administration, but Junior Isas are excluded from those rules²⁴. There is one further wrinkle: if the child was over 16 and married, which is possible in Scotland and Northern Ireland, the money would go to their spouse and the Isa inheritance rules would stand²⁴. The page on what happens to an ISA when someone dies explains the general rules.

If the child cannot manage the account, for example because of illness or disability affecting their capacity, the account can be managed on their behalf through a formal legal appointment. The route depends on where in the UK the family lives¹:

You, or a close friend or relative, apply for the order, and the appointed deputy or guardian can then manage the account in the child's interests. The page on managing an ISA for someone who lacks mental capacity explains the process.

Where the protection and help sit

Money in a Junior ISA is protected in the same way as other savings. Cash held with a UK bank, building society or NS&I is covered by the Financial Services Compensation Scheme, and the child's money counts in its own right, not against the parents' limit. Investments in a stocks and shares Junior ISA are covered differently, against the failure of the provider rather than falls in value. The page on how your ISA is protected explains both.

Two protections matter less here than elsewhere. Because the money cannot be withdrawn, there is no purchase to reverse, so cooling-off rights are of limited use once the account is running; the page on cancelling an ISA covers what rights do exist. And if a provider gives poor service or mishandles a transfer, the registered contact can complain to the provider and then to the Financial Ombudsman Service, as the guide to complaining about an ISA provider sets out.

For free, impartial help with any of this, MoneyHelper explains savings products, and HMRC's guidance on managing a Junior ISA is the authoritative source for the rules on registered contacts, transfers and exceptions¹. The tax treatment of ISAs, including what is and is not tax free, is covered in ISAs and tax, and the wider picture of all four adult ISA types is in types of ISA.